Visitors cast their shadows on the logo of the Tokyo Stock Exchange, prior to a ceremony marking the end of trading in 2012 at the Tokyo Stock Exchange in Tokyo December 28, 2012.
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Electronic information boards display market information at the London Stock Exchange in the City of London January 2, 2013.
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People look at a stock index board outside a brokerage in Tokyo January 30, 2013.
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Traders work on the floor of the New York Stock Exchange, January 18, 2013.
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The WIG20 index is seen reflected in clocks showing the time of the different cities in the world at the Warsaw Stock Exchange January 3, 2013.
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Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange January 4, 2013.
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People stand on the balcony above the DAX board at the Frankfurt stock exchange January 9, 2013.
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By Herbert Lash| NEW YORK

NEW YORK Global equity markets fell and the euro slid against the dollar on Thursday after data showed the euro zone slipped deeper into recession in late 2012 than had been expected, but deal-making helped Wall Street close near break-even.

The euro tumbled to a three-week low against the dollar and plunged against the yen after data on gross domestic product in the euro zone painted a dismal picture of the regional economy.

U.S. equities have struggled to break above current levels where they have hovered for almost two weeks. The benchmark S&P 500 is up more than 6 percent so far this year.

"While I'm not bearish, I don't see many upside motivations at these levels," said Donald Selkin, chief market strategist at National Securities in New York, who cited the low level of the VIX as a sign the market was overbought.

"We need to digest some of our gains to go higher, but people are so eager to buy on the dips that we're not even seeing dips anymore. People are just chasing the market higher," said Selkin, who helps oversee about $3 billion in assets.

Berkshire and the private equity firm will pay $72.50 a share for Heinz. Investors said the deal bodes well for equities, even with the S&P 500 trading at five-year highs.

"The only reason a company buys another company is because they see an upside. Even though we are at multiyear highs, this kind of activity shows that there is more room for a rally, feeding optimism to the market," said Randy Frederick, director of trading and derivatives at Charles Schwab.

Economic output in the euro zone fell by 0.6 percent in the fourth quarter, EU statistics office Eurostat said, while Germany contracted by 0.6 percent, marking its worst performance since the global financial crisis was raging in 2009.

The downturn marked the currency bloc's first full year in which no quarter produced growth, extending back to 1995. For the year as a whole, GDP fell by 0.5 percent.

Germany is expected to rebound but the figures suggest the bloc as a whole could remain in recession in the first quarter of this year, despite a recent jump in market sentiment as fears that the currency bloc could fall apart have faded.

"The market has weakened because of the GDP numbers," said Barclays commodities analyst Miswin Mahesh. "It's been a macro sell-off this morning with the GDP numbers coming out, rather than any fundamental move in itself. Most asset classes have sold."

"The jobless claims numbers were solid, and with the European market closing, the news out of Europe is pretty much done for the day," Frederick said.

Initial claims for state jobless aid dropped 27,000 to a seasonally adjusted 341,000, the Labor Department said, better than markets had expected.

In Europe, the FTSEurofirst 300 index .FTEU3 of top companies slipped 0.17 percent to close at 1163.59, but the index also pared losses on signs of increased dealmaking.

British fund manager Aberdeen Asset Management (ADN.L) unveiled two acquisitions, of a U.S. fund manager and a majority stake in an international private equity business, to buy its way into new markets. Shares rose 2.5 percent.

"A lot of companies, fearing about the systemic risk, have been delaying investments for a long time," said Gilles Guibout, head of euro zone equities at AXA Investment Managers, which has 554 billion euros ($739 billion) under management.

"But now that this risk is gone, you could well see a sudden catch up in capital expenditures as the companies put their cash to work," Guibout said.

The yen rallied to session highs versus the dollar as investors pared bearish bets on the Japanese currency. The dollar fell as low as 92.92 yen and last traded at 92.85, down 0.56 percent on the day.

GRAND RAPIDS, Mich./WASHINGTON When President-elect Donald Trump returns to this factory town on Friday for a victory celebration, he will find a region that is already experiencing the manufacturing renaissance he promised on the campaign trail.